FW
Due to short supply and improved exports as well as demand from domestic mills, prices of cotton may touch Rs 43,000 per candy by end of January. The price of the commodity has already surged 10 per cent to Rs 41,500-42,000 a candy in last two weeks. According to industry sources, daily arrival of cotton, which should have been more than 225,000 bales (a bale of 170 Kg), is about 150,000 bales. Everyone is trying to meet their export shipment deadlines and domestic demand and prices remain firm. Traders and ginners aver that farmers want cash rather than cheques and that's why they are holding the crop.
Bhagwan Bansal, President, Punjab Cotton Ginners Association says price of cotton have gone up due to short arrival and good demand from domestic mills and exporters. It may continue to increase further as there is no hope for rise in supply in the near future and pipeline is still dry. Due to cash shortage, farmers desist to bring raw cotton in the mandis across India. Kapas prices are ruling in a range of Rs 1,100-1,160 per 20 kg. According to Bansal, cotton prices may go up to Rs 43,000 per candy in the next one month if supply doesn't improve.
Exporters have no choice but to buy at any cost as they have to fulfill prior commitments. According to the exporters, they have not made forward contract for February and March in this season, because of the constant rise in the cotton prices.
In its bid to bring about a change in lives of some of the world’s 40 million garment workers, outdoor clothing retailer Patagonia has released a short 13-minute film, made in association with Little Village Films. Named Fair Trade: The First Step, it depicts the daily routine of a young Sri Lankan mother who works as a sewing machine operator in a factory that sews Patagonia clothing and her five-year-old son, who is able to attend the beautiful daycare built with the factory’s Fair Trade premiums. Some of the footage depicts the atrocious conditions, including chemical exposure, experienced by laborers in conventional factories, which really puts the Fair Trade experience into perspective.
So far Patagonia has sold 218 Fair Trade-certified clothing items (up from 11 in fall 2014). Now, it plans to reach 300 items by the end of 2017. The certification exists in factories as far as countries like Thailand, India, Colombia, Mexico, Vietnam, and Nicaragua. The clothing is certified by Fair Trade USA, which is a different entity than Fairtrade International but follows similar guidelines. This is an admirable step for a company that’s already renowned for its social and environmental progressiveness. Patagonia never fails to impress.
The National Tariff Commission (NTC) has slapped provisional countervailing duty on the import of Indian fine cotton yarn for four months. The duty, ranging from Rs 26.89 to Rs 55.8 a kg, will apply on the import of cotton having 55.5 or more counts originating or imported from India. The duty will not be levied on imports of the investigated product that are to be used as inputs in products destined solely for exports and are covered under any scheme exempting customs duty for exports under the Customs Act of 1969.
Last year after a complaint lodged by All Pakistan Textile Mills Association (APTMA) on behalf of the domestic industry, the commission opened a countervailing investigation under Section 11 of the Coun¬tervailing Duties Act of 2015 on April 20. The said duty is an import tax imposed on certain goods to prevent dumping or counter export subsidies.
Under the investigation, three Indian producers of fine cotton yarn (carded or combed) were selected for determining subsidies on the basis of the information provided by them and the government of India. The NTC concluded that the subsidised imports had hurt the domestic industry as they suppressed domestic prices.
The three India exporters that were selected for investigation by the NTC were slapped with Rs 26.89, 50.81 and 48.10 per kg provisional amount of countervailing duty, while a duty of Rs 55.8 per kg has been imposed on other Indian exports of fine cotton yarn.
As the most optimistic market in Asia Pacific, India tops the Mastercard Index of Consumer Confidence rankings with Myanmar, Vietnam, Philippines and Bangladesh rounding off the top five. The overall consumer confidence in Asia Pacific continues to be steady showing stability (within plus or minus five points from the previous survey) in nine out of 17 markets. With an increase of 1.2 points in the overall score from the first half of 2016 to 60.9 points in the second half, Asia Pacific sits just above the 60 point optimistic mark.
However, the overall stability indicates some significant movements across five markets compared to six months ago. Hong Kong, Thailand and Bangladesh saw more than 10 points improvement while Malaysia and Taiwan saw decreases more than 10 points.
Bangladesh recorded the largest gain of 11.2 points to 82.8 points, a significant improvement in the overall consumer confidence compared to the first half of 2016 where it saw a relatively smaller increase of 4.2 points. The country’s increase in score was backed by an improvement in all components, the largest coming from heightened expectations in stock market movements (+24.6 points). Both Thailand and Hong Kong also saw a large improvement of 10.1 points, putting Thailand in optimistic territory and Hong Kong in neutral territory.
On the other hand, eight of the 17 markets saw a fall in confidence levels. The biggest decline in optimism levels was observed in Taiwan, followed by Malaysia, and Myanmar. According to the survey, prospects for the stock market were the key driver of the decline.
Hosiery exporters in Pakistan want the surcharge on export proceeds to be abolished. There is a 0.25 per cent export development surcharge, which is deducted from export proceeds.
Exporters say abolishing surcharge will help them use the cash liquidity for enhancing exports. Stitching units want to be allowed to import raw material under the Duty and Tax Remission for Export (DTRE) scheme. At present, they cannot import raw material under the DTRE system. There are about 13,372 circular knitting machines, 10,646 flat knitting and 23,241 socks knitting machines in the country. Capacity utilization is around 70 per cent.
The readymade garment segment has emerged as an important small-scale industry in Pakistan as products have strong demand both at home and abroad. The garment industry is a good source of employment to a large number of people and it mainly uses locally produced raw materials. The machines used by the industry are imported or locally made and assembled. Production of garments by units depends on export orders directly or indirectly and these orders have somewhat risen in terms of value, but they have fluctuated widely in terms of quantity.
HanesBrands, a leading global marketer of everyday basic apparel under world-class brands, has earned above-average scores for water management and supply chain after voluntarily disclosing data for the CDP 2016 Climate Change Report. CDP, formerly known as the Carbon Disclosure Project, is a global disclosure system that enables companies and other entities to measure and manage environmental impacts.
Hanes’ A- water score was higher than the apparel industry and S&P 500 averages in the following categories: context, governance and strategy, direct risks and response and indirect risks and response. The company’s B supply chain score was ahead of the supply chain average in all reporting categories: governance and strategy, risk and opportunity management and emissions management.
Hanes scored high because it owns the significant majority of its manufacturing and supply chain operations, achieved its CDP scores for implementing a range of best practices to reduce water use and mitigate water risk, along with a holistic program to reduce energy consumption in its supply chain. The company has set 2020 goals of 40 per cent reduction in energy use and carbon emissions, 50 per cent reduction in water use, and sourcing renewable energy for 40 per cent of the company’s needs.
Bangladesh is hosting Gapexpo from January 18 to 21. Some 400 exhibitors from 24 countries are participating in the ongoing expo. On display are latest collections of garment accessories, packaging including labels, zippers, tags, tapes, thread, ribbon, buttons, rivets, laces, hooks, transfer film, paper, ink etc.
Gapexpo provides a platform for members to display their collections to readymade garment exporters and buying houses. The Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association was set up in 1989. It represents more than 1,500 garment accessories and packaging industries in the country. This sector earned $6.12 billion during 2014-2015. This figure is likely to touch $12 billion by the end of financial year 2018 and $18 billion by the end of 2025.
The garment accessories and packaging sector is an important component of backward linkages, which is critical for the growth of the readymade garment sector in the country. By way of support to the sector Bangladesh is thinking of cash incentives for exporters of garment accessories and low interest bank loans for infrastructure development, which can boost the sector and create more jobs. The country has already established an international standard accessories sector, which contributes to value addition and reduces lead time.
Fast Retailing has established a Denim Innovation Centre in Los Angeles, a city known as the home of denim. This is the group’s first facility to focus on research and development of denim fabric, in Los Angeles, California. The facility aims to bring specialists in jeans development from premium denim brand J Brand and other companies affiliated to the Fast Retailing Group. The Centre has been established to develop jeans utilising innovative technologies and materials based on the established tradition of jeans.
In fact, its first project would be to conduct research on Uniqlo and J Brand jeans. Products developed for both brands will be available from Autumn/Winter 2017. By establishing the Denim Innovation Centre, the global hub for information on denim, Fast Retailing will be able to quickly incorporate the essence of current trends in its designs.
Moreover, the centre has a full range of in-house equipments for product development, to produce higher quality jeans. Previously, Fast Retailing outsourced production of samples and other operations to external manufacturers. But now with the Denim Innovation Centre, the company will be able to manage the entire process in-house. By using the latest equipment, the centre will be able to quickly create and evaluate sample products, enhancing the speed and quality of product development considerably.
The Centre can also be used by contracted producers as a research centre, which will increase the integrity of the finished product during actual production. In addition, the facility will focus on environmentally friendly processing and production methods, conducting R&D on chemicals and techniques used for fading and distressing of jeans.
Cotton yarn manufacturers in India may not add much to capacity in the next five years. Reason: a decline in exports to China and slowing purchases from local fabric makers, who prefer to use manmade fiber than yarn; demonetisation-induced cash crunch has forced the closure of smaller spinning mills.
By the end of financial year 2016, India had 50 million spindles. There is overcapacity and so the cotton yarn industry is expected to add only about three million new spindles between 2016 and 2021. Since 2014, China has preferred to use its internal resources rather than rely on imports. So its cotton yarn imports from India have declined consistently.
India’s cotton yarn production is estimated to fall by about five to seven per cent in financial year 2017. High cotton prices and easy availability of manmade fibers at competitive rates have led to the slower growth of production of cotton yarn. Though yarn exports to China are likely to remain low, demand for yarn in other export markets including Vietnam, Bangladesh and Pakistan is likely to remain healthy. India’s cotton yarn exports are likely to be at 1,250 million kg for financial year 2017 as against 1,309 million kg in financial year 2016.
"The 58th edition of the India International Garment Fair (IIGF) got underway yesterday. The three-day Fair, organised by the Apparel Export Promotion Council (AEPC), India, will cater to Autumn-/Winter 2017/ 18. The Fair was inaugurated by Union textile minister Smriti Irani. Also present on the occasion were Ajay Tamta, Minister of State for Textiles, Rashmi Verma, Secretary (Textiles), Ministry Of Textiles and Subrata Gupta, Joint Secretary, Ministry of Textiles amongst many others."
The 58th edition of the India International Garment Fair (IIGF) got underway yesterday. The three-day Fair, organised by the Apparel Export Promotion Council (AEPC), India, will cater to Autumn-/Winter 2017/ 18. The Fair was inaugurated by Union textile minister Smriti Irani. Also present on the occasion were Ajay Tamta, Minister of State for Textiles, Rashmi Verma, Secretary (Textiles), Ministry Of Textiles and Subrata Gupta, Joint Secretary, Ministry of Textiles amongst many others.
Speaking at the inauguration, Irani said festivity in terms of trade had begun under the aegis of AEPC which is organising its 58th Fair. She congratulated the Fair participants for presenting their talent to the rest of the world. She hoped that through these endeavours, AEPC would go from strength-to-strength and small and medium enterprises that are new in the world of exports use these platforms that are comparatively cost effective.
Speaking at the inauguration Verma said, from next week apparel and garment exporters will be reimbursed for the state levies paid by them, with the Textiles Ministry securing Rs 500 crores from the Finance Ministry in this regard. In June last year, the government had approved a Rs 6,000 crores special package for textiles and apparel sector to create one crore new jobs in three years, attracting investments of $11 billion and generating $30 billion in exports. She said "Many of the exporters have already given their claims to the Customs department. Very soon these reimbursements will start, in fact from next week, you will start getting your money." Verma hoped We hope garment manufacturers will use this package to augment capacity to set up new units so that more investment comes and more jobs are generated and India emerges as a key player in the international market. "China currently is ceding space, it is a huge opportunity and I implore upon all our exporters to take advantage of this opportunity," Verma said.
Speaking on the occasion, Ashok G Rajani, Chairman, AEPC said India’s RMG export during April-December 2016-17 declined 0.2 per cent compared to the same period last financial year. Market sentiment were affected due to delays in roll out of special package announced for the apparel sector in June 2016 and stagnation in the Europe and US markets.
Around 1,081 buyers from 94 countries from across the world are the Fair Fourteen states are participating. A total of 312 participants are showcasing women’s wear, accessories, kid’s wear and men’s wear. The Fair aims to be one of the largest platforms in Asia where overseas garment buyers can source and forge the business relationship with India’s finest in Apparel and Fashion Accessories domain.
